DUBAI Dec 11 Qatar Telecom, which is
majority state-owned, plans to issue a long ten-year bond after
investor meetings conclude, arranging banks said on Tuesday.
The former monopoly's latest bond will mature in February
2023, and order books are currently open. Roadshows conclude on
Qtel, which last tapped global debt markets for $2.75
billion in the fourth-quarter of 2010, last week mandated six
banks to help arrange the potential bond, which is expected to
be benchmark-sized, typically at least $500 million.
The latest bond will fall within the company's existing
curve, which includes maturities in 2021 and 2025.
One regional trader said that pricing will reflect this,
with the existing $1 billion 2021s trading at a
z-spread of 175 basis points and the $750 million 2025 maturity
at 192 bps.
The trader said market expectations are for Qtel's 2023 bond
to price within that range, depending on demand.
The z-spread is a pricing tool which calculates the number
of basis points that need to be added to a zero-coupon yield
curve to make the bond's discounted cash flows equal the bond's